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Blast Unveils Intelligent Petro-Services Module

HOUSTON /PRNewswire-FirstCall/ -- Blast Energy Services Inc. has successfully demonstrated its new remote-sensing product that it believes will dramatically improve the energy industry's ability to remotely monitor and control worldwide assets on a real-time basis. Blast has demonstrated the Intelligent Petro-Services Module (IPSM) to several potential customers, including representatives from energy services companies and systems integrators, resulting in requests for further demonstrations to decision makers and introductions to a number of prospective high-visibility customers.

"This demonstration highlighted the unique capabilities of the IPSM to integrate incompatible sensor networks currently used in the industry, connect them to the IP network, and function as a remote application server to maintain operations when all other communications are severed. We are excited by the market potential and favorable responses received from some of the leaders in this field," said John O'Keefe, President and CEO of Blast.

With the convergence of several new technological breakthroughs, Blast can now provide an integrated and intelligent solution, whereby operators can remotely monitor and control their wells, pipelines, or other assets on a real-time basis over any standard IP network. Blast has achieved this solution in part by enhancing the capabilities of a broad range of Cisco routers. Blast has integrated cost-effective remote computing, new communication routers with proprietary software, the conversion of multiple industry sensor protocols into one network standard, radio wave over Internet IP capability, and policy rule engines. All this will allow customers to take immediate action to remedy the remote event based on thresholds they have specified.

Advantages of the IPSM

Providing the operator with an automated real-time remote response to multiple events occurring in the field, including the ability to immediately notify operations staff anywhere over the IP network

Flexibility—the module can be cost-effectively installed in small field operations, with just a few sensors, or scaled up to handle large operations, managing hundreds of different sensor types

Providing the operator with an improved interface between existing remote sensor networks and backend applications through the IP network. These capabilities can seamlessly upgrade a producer's existing network infrastructure by converting multiple industry sensor protocols into one network standard

Blast plans to schedule further demonstrations for potential energy customers and attend select trade shows to promote this new product. A slide show of the demonstration conducted last week has been posted to the company's Web site.

Satellite ServicesMeanwhile, Blast has begun to re-grow its conventional satellite communications business. During August 2008, Blast received an initial purchase order for 12 satellite systems from a large pipeline company, which is expected to grow to a total deployment of 35 new systems. The total order represents a large increase in Blast's installed base. Based on the new business and repeat business from customers, such as BP, Blast believes the business unit should begin to generate a positive gross margin before year end.

Down-Hole SolutionsBlast's radial jetting rig is on standby at the location of the five-well drilling program being operated by Reliance Oil and Gas outside of Abilene, TX. Heavy rains have flooded the well sites, which delayed drilling operations for several weeks. Reliance plans to deploy the Blast Rig #1 to laterally complete the first well next week and expects to horizontally jet all five wells in the program before the end of September 2008. Meanwhile, operations have already commenced in south Texas on wells Reliance is operating in the Austin Chalk formation. Blast plans to move its rig to that area for a twenty-well program after it has completed its work in Abilene.

Under the terms of the revenue sharing agreement, Reliance will operate the lateral jetting rig at no cost to Blast and will share 50% of the revenues. The rig has been contracted at a gross rate of $20,000 per well for the current five-well Abilene program, but with success in stimulating production, the rate is expected to double for the Austin Chalk.